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Palm Desert Council approves amended land sale, loan to advance ARC Village affordable housing
Summary
Council approved an amendment to the disposition, development and loan agreement with Chelsea Investment Corporation for the ARC Village affordable housing project, changing the land sale price and increasing a loan to preserve tax-credit affordability requirements; council vote was 5-0.
The Palm Desert City Council on March 27 approved an amendment to the disposition, development and loan agreement with Chelsea Investment Corporation for the ARC Village affordable housing project, authorizing a revised land purchase price and an increase to the loan to preserve tax-credit financing and affordability requirements.
Veronica Chavez, director of finance, told the council the developer requested to buy the site at a fair-market value of $1,680,000 and to increase the loan from the authority to reduce construction costs by roughly 20 percent so the project can meet required affordability levels and retain its tax-credit award. Chavez said the amendment also recognizes a change in the number of manager bedrooms and a condition for a secondary emergency access through Las Serenas; she added that all other terms of the agreement remain substantially the same and that loan repayment is anticipated at the end of the loan term.
The public hearing drew no public commenters and Housing and Community Development accepted the requested exemption under Health and Safety Code section 33433, staff said. Council members expressed support for advancing the project; a motion to approve the amendment passed 5-0.
Why it matters: The amendment aims to reduce developer construction costs so the project can meet affordability covenants tied to tax-credit financing. Council approval keeps the ARC Village project moving through the development pipeline after multiple prior steps.
Council action and next steps: The council voted to approve the amendment; staff and the developer will proceed with project implementation and required follow-up steps tied to financing and permitting.
A note on scale: Council members and staff described the development as a small, region-serving affordable housing project; council remarks indicated roughly 40 units with 10 designated for ARC clients (count provided during council remarks and not stated as final in project documents).
